US: Dallas Fed Manufacturing Index drops to 2 in April, falls short of market expectation of 10

Eren Sengezer FXStreet

According to the Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, the manufacturing sector lost momentum in April with the general business activity index dropping to 2 from 6.9 (revised from 8.3) in March. This reading came in below the market expectation of 10. The US Dollar Index didn't react to the data and was last seen flat on the day at 98.06.

Key takeaways from the press release

The production index, a key measure of state manufacturing conditions, ticked up two points to 12.4, indicating output growth accelerated slightly from March.
The company outlook index climbed two points to 6.3.
The employment index fell eight points to 4.6, its lowest reading since the end of 2016.
The index of future general business activity remained at its March reading of 18.4, while the index of future company outlook edged up from 18.4 to 20.9.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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